Abstract

Rural and agro-tourism has increasingly been recognized as a vital tool for promoting local entrepreneurship, income generation, and sustainable development in rural areas. This study explores the role of tourism in stimulating entrepreneurial activities among local communities in Tirunelveli District, Tamil Nadu, with a particular focus on how education, participation in tourism, experience, infrastructure, and financial support influence business performance and income. A sample of 120 local entrepreneurs engaged in tourism-related activities including homestays, guided tours, handicrafts, and agro-based experiences was selected using a purposive sampling technique. Data were collected through structured questionnaires and analyzed using descriptive statistics, ANOVA, correlation, regression, cluster analysis, and SWOT analysis to identify patterns of participation, income generation, and entrepreneurial growth. The results indicate that higher education levels, regular participation in tourism activities, and prior experience significantly enhance entrepreneurial success and income. Financial support and infrastructure also play crucial roles in sustaining business operations and expanding market reach. Cluster analysis classified entrepreneurs into high-performing, moderate, and emerging groups, revealing that targeted interventions such as training programs, access to credit, marketing support, and skill development can facilitate the growth of moderate and emerging entrepreneurs. The study concludes that agro and rural tourism serve as catalysts for local economic empowerment, enabling households to diversify income, improve livelihoods, and strengthen socio-economic resilience. This research contributes to a better understanding of the dynamics between tourism participation and entrepreneurial development and provides practical implications for policymakers, local governments, and community-based organizations seeking to promote sustainable rural entrepreneurship.

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